Endowment FAQ

Endowment FAQs

What is an endowment?

Individual endowments represent the legacy of benevolent donors who invest for longterm growth. An endowment is timeless because the long-term aim is to conserve both the corpus and purchasing power. The investment income and gains earned from an endowment advance the strategic vision of the donor on a continual basis.

Why are endowments important?

Endowments build a legacy of support that spans generations. As a permanent legacy, they will continue to give educational opportunities to the most talented students long into the future. They also allow OCU to recruit and retain the best teachers to build programs and act as esteemed mentors to our students.

What are the minimum endowment levels to establish a named endowed fund?

The minimum gift required to establish a named endowment fund is $25,000. Endowment gifts can be pledged and paid over a period of up to five years.

Some examples of minimum guides for named endowed funds are:

Scholarship: $25,000 Professorship: $1 million Chair: $2 million

Whose name is on the endowment?

Donors are encouraged to name their endowed fund in a way that is meaningful to them. Many donors establish an endowment in honor of a specific person — a family member, professor or coach — and name the fund accordingly. Endowments can also be named more broadly for the discipline they support or the group or individuals who establish them.

Can I give to an existing endowment?

Yes. Unless you state otherwise in your memorandum of understanding when the gift is established, the fund can be left “open” to future gifts from you or others who choose to support the fund. While there is a minimum of $25,000 to establish a new endowment, there is no minimum gift required for increasing the size of an existing endowment.

Can I choose what my endowment supports?

Yes. A number of donors to Oklahoma City University choose to restrict how their funds can be used. You can designate your gift to support a particular school or program, special initiative, library, or other opportunity at the university or establish an endowment whose income may be utilized at the discretion of the Board to meet strategic needs.

How is an endowed fund invested?

OCU adheres to investment policies intended to provide a balance of risk and return in the portfolio. The investment portfolio is diversified to keep volatility within acceptable limits for the portfolio as a whole. This provides the greatest assurance that future generations benefit from the endowment as much as current students.

When will an endowment begin generating payout that can be spent?

Once the initial gift has been received, the minimum required funding levels have been achieved, and all required paperwork has been completed, initial payout of funds typically will become available after 12 months. Individual gifts in excess of 50% of the market value will become available after 12 months.

How is the amount of annual payout determined and then distributed?

The amount of payout allocated each year varies because it is based on the market value of the endowment portfolio for the last twenty (20) quarters. The Board of Trustees reviews and approves the spending rate annually. The average spending rate for the past five years has been approximately 5% of the endowment’s average market value.

How does the endowment increase in value?

While investment returns help to fuel the growth of OCU’s endowment, the addition of gifts is important over the long term. Recurring contributions are important because this allows for averaging the cost basis over time.

A Moment in Time: Arts & Sciences

• New graduate computer science degree tracks—cybersecurity, mobile development, data science, and web development—are being introduced over the next year to meet industry needs. • An esports arena opened this year, following the 2020 introduction of OCU’s esports management degree that feeds the exploding industry.